European stocks decline after German Ifo data; DAX down 0.51%

Investing.com - European stocks were lower on Monday, as sentiment was hit by disappointing German business confidence data and amid ongoing uncertainty over whether Spain is about to ask for a full scale sovereign bailout.

During European morning trade, the EURO STOXX 50 declined 0.84%, France’s CAC 40 tumbled 0.93%, while Germany’s DAX 30 dropped 0.51%.

Data showed that German business confidence in September deteriorated to the lowest level since March 2010, amid ongoing concerns over euro zone’s debt crisis.

In a report, the German research institute, Ifo said its Business Climate Index fell by 0.9 point to a seasonally adjusted 101.4 in September from a reading of 102.3 in August. Analysts had expected the index to ease up by 0.2 points to 102.5 in September.  

Markets were also jittery as Madrid is to present its draft budget for next year and announce structural reforms on Thursday, while the results of bank stress tests are due on Friday. In addition, ratings agency Moody’s is expected to complete a ratings review on Spain later this week.

Over the weekend, Spain’s economy minister said the country would not rush to seek external financial aid, as pressure mounted on Spain to seek a bailout.

Financial stocks were broadly lower, as shares in Germany's Deutsche Bank and Commerzbank tumbled 1.87% and 2.80%, while French lenders BNP Paribas and Societe Generale retreated 0.63% and 0.38% respectively.

Peripheral lenders also posted sharp losses, with Italian banks Unicredit and Intesa Sanpaolo plunging 1.73% and 2.07%, while Spain's Banco Santander and BBVA plummeted 1.60% and 1.83%.

On the upside, Syngenta jumped 1.08% after the agrochemicals giant increased its target for sales in 2020 by USD3 billion, as it accelerates the introduction of new technology and benefits from a reorganization.

In London, commodity-heavy FTSE 100 slumped 0.41%, weighed by losses in mining and oil stocks.

Mining giants Rio Tinto and BHP Billiton plunged 1.96% and 1.69%, while steel producer Evraz lost 4.28%.

Oil giant Anglo American was also on the downside, with shares plummeting 2.92%, while rival group BP gained 0.50% amid ongoing reports that it may buy a stake in Russian state-controlled peer Rosneft.

Elsewhere, U.K. lenders tracked their European counterparts lower. Shares in HSBC Holdings fell 0.21% and Lloyds Banking dropped 0.40%, while Barclays and the Royal Bank of Scotland retreated 0.74% and 0.82%.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.25% fall, S&P 500 futures signaled a 0.31% decline, while the Nasdaq 100 futures indicated a 0.21% loss.

In addition, Greece's finance ministry dismissed German media reports that the country's budget shortfall could be as much as EUR20 billion, almost twice as much as previously thought.